Nifty’s close below 10,184 shall confirm bearish reversal

Metals, pharma, bank and auto stocks saw a lot of action through the day

A sovereign ratings upgrade for India by Moody’s buoyed the domestic equity market on Friday, helping the BSE Sensex to end the session 236 points higher at 33,343, while the Nifty50 closed 69 points higher at 10,284.

Metals, pharma, bank and auto stocks saw a lot of action through the day. Cipla, Maruti, HDFC, Tata Motors, ICICI Bank, Coal India, Vedanta, IndusInd Bank, Sun Pharma and Tata Steel settled among the top gainers in the Nifty50 index.

Mazhar Mohammad, Chief Strategist fo rTechnical Research & Trading Advisory, `, analysed the market behaviour as under.

“Despite a strong upmove Nifty50 signed off the day with a small bull candle as it failed to build on to the gains after the gap up opening. It was looking more like a spontaneous reaction on the part fo bulls cheering the positive news flows as intra day gains were capped at critical resistance point placed around 10338 levels. Hence, it will be important to observe nex trading sessions price action as follow up buying may confirm that trend has indeed reversed in favor of the bulls though the confirmation for the same shall come once the Nifty50 manages to sustain above 10411.

On the downside, it is important to look out for 10,184 level in Monday’s session as a close below this point shall confirm bearish reversal once again. As of now traders can selective look for small pockets of opportunities where ever strength is visible, he said.

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